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Long-term investment decision, NPV method Jenny Jenks has researched the financial pros and cons of entering into an elite MBA program at her state university. The tuition and needed books for a master's program will have an upfront cost of $100,000. On average, a person with an MBA degree earns an extra $20,000 per year over a business career of 40 years. Jenny feels that her opportunity cost of capital is 6%. Given her estimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs?

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